The recent spike in prices appears to be short-lived as property values have taken a dive in the latest results
You could blame the volatile data for the seemingly mixed results coming out of the Darwin market.
However, there’s little doubt that it’s well into a downturn phase.
The latest CoreLogic RP Data stats show that median house values have plunged 5.37% over the past year. Units have also suffered a hefty 3.2% fall in values.
“Over the past 12 months, we’ve seen several cities enter a correction phase, with Darwin values falling the most,” says Tim Lawless, head of research at CoreLogic RP Data.
Home prices are not the only thingsthat are losing ground. Landlords are also earning less, with weekly house rents sliding by 9.5% over the year while unit rents dropped by 8.1%.
The slowdown in the resources sector over the past year has clearly weighed on housing market activity. The unemployment rate, though low compared to the rest of Australia, is rising at a time when affordability barriers are constrained. Darwin is also currently experiencing rapidly declining population growth, which further weakens demand.
Bright spots
Despite the overall weakness in the market, there are notable outperformers in Darwin. Suburbs like McMinns Lagoon and Fannie Bay were the biggest gainers, racking up 48% and 42% respectively. The higher price points didn’t seem to deter buyers who are keen to get into these desirable suburbs.
SUBURB TO WATCH
Leanyer: Desirable family-friendly suburb with big potential
Leanyer is a family suburb located 14km from the Darwin CBD and just next door to Casuarina (home to the largest shopping centre in the NT). Other amenities that residents love being close to are the Royal Darwin Hospital, the Hibiscus Shopping Centre, and the Leanyer Recreation Park.
And for those seeking more natural features, it is also close to the beach and has nice parks. The icing on the cake is that the suburb is easy-going, friendly and peaceful – the perfect recipe for happy tenants. The vacancy rate is a decent 2.46%, according to Real Estate Investar.
The median household income of $1,923 is $689 above the national average, according to the ABS. And with the median price for houses falling by 3.3% in 12 months, investors have a good chance to buy towards the bottom of the market.
Households in this suburb are typically couples with children, and consequently large houses with swimming pools are generally sought after.
You can buy three-bedroom houses around McArthur Court for less than $550,000. Families love the fact that they are only minutes from Leanyer Primary School, St Andrew Lutheran School, shops and a daycare centre.
Meanwhile, there are five-bedroom houses which can be bought close by on Ridgehaven Circuit for more than $800,000.
